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Originally an initiative of the South Australian industry body, Olives S.A., the company has been researched and established by a dedicated group of growers intent on finding viable markets overseas for our product.
Why seek an overseas market?
It is estimated that the Extra Virgin Olive Oil produced in Australia will exceed the Australian demand well before 2010. While many growers have found an outlet for their oil at markets, gourmet shops, through friends and acquaintances and through super markets, more and more we are faced with competition from each other. This can only result in a price war sooner or later.
In addition, for most of us, the costs and time associated with developing an export market are prohibitive. It seems to us that if we can work co-operately to market our oil then we are more likely to succeed. Watch out short Power Point Presentation below.
So the company has been formed and expressions of interest sought from the growers. It is not a co-operative. There will be 20 individual shareholders, each contributing a sum of money to fund the operation. An individual shareholder could be a cluster of growers. i.e. a number of growers (usually not more than 5 growers) joining together to buy a share or block of shares. Each grower would contribute a smaller amount of money to establish the cluster which will in turn contribute to fund the operation.
The process of establishing a market is not likely to be quick. Perhaps a year. Rather than finding customers who want to buy bulk oil, we will try to seek customers who want to buy a value added product – either a 500ml bottle or some other packaged product. Through this means we believe we can obtain a better return to growers. This does not preclude selling bulk oil if we can achieve a good return to growers. The return we do achieve will, however, be very dependent on the price our customers are prepared to pay.
We are very aware that bulk prices currently being offered to the small to medium grower will make it very hard for growers to survive.
For further information about EOA please use the contact us facility on this website